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RegMed Daily Dialogue, 9/7/11, a snapback rally from oversold positions

The 6 W’s: Who, what, where, when, why and what of it…


EconRecon:  On the economic front Wednesday, the Federal Reserve will release its Beige Book summary of economic conditions at 2p.m. EST. Also, President Obama will probably propose injecting $300B into the economy next year through a mix of tax cuts, infrastructure spending and aid to local governments. The big black cloud is still over-hanging the market and not lifting.  Are we coping with a healthy balance of optimism and pessimism – NO – as who can cope with a lack of control of  short-term trading or even near-term investment as long term focus is so risky …


Expectation: After the Labor Day weekend + 1, we return to work and set our sights on the last 4 months of the year. This year, there are an unusual number of factors to consider – the most important being the health of the economy as well as the debt problems in the EU (the problem is our co-dependence of respective issues) and here in the US.  However, this does not necessarily mean lower stock prices will follow. After this summer’s volatile sell-off, expectation is already priced into RegMed small caps and I expect our universe to finish the year in positive territory and share pricing. There are a lot of crosscurrents buffeting stocks these days, so as we roll through 2011, it’s important that investors be less attuned to market dynamics and focused on event driven milestones and news flow.


Starting the Day:  Futures on the Dow rose 113 points to 11,241.  Futures on the S&P’s 500 gained 13.40 points to 1,177.90. The Nasdaq 100 rose 23.25 points to 2,188.50. Markets are looking for their 1st gains of September after dropping sharply over the 1st 3 trading sessions of the month.


Mid-Day: The NASDAQ is UP +56.55 (+2.29%) to 2,530.38. The Dow is also UP +202.79 (+1.82%) to 11,342.09.  Stocks re bound from 4 day drop; DOW is getting closer to 12,000.


Mid-Day Movers: Aastrom (ASTM), Athersys (NASDAQ:ATHX), BioMimetic (NASDAQ:BMTI), BioTime (AMEX: BTX), Cytori (NASDAQ:CYTX), Dendreon (NASDAQ:DNDN), Geron (NASDAQ:GERN), NeoStem (AMEX: NBS), Neuralstem (AMEX:CUR), Opexa (OPXA), Osiris (NASDAQ:OSIR), Pluristem (NASDAQ:PSTI), ImmunoCellular (NYSEMKT:IMUC), ReNeuron (LSE: RENE.L)), Opexa (OPXA), Osiris (OSIR), Thermogensis (NASDAQ:KOOL) and Tengion (TNGN)


What’s new in the regenerative medicine/stem cell market …

Pluristem (PSTI) PLX Cells Potential to Treat Acute Radiation Syndrome:
Animal studies suggest that PLacental eXpanded (NYSEMKT:PLX) cells have potential in treating life threatening hematopoietic complications associated with Acute Radiation Syndrome (NYSE:ARS). The bottom line, these initial pre-clinical animal studies suggest that PLX Cells might increase survival rates following exposure to lethal doses of radiation. PSTI still does not understanding the mechanism of action of PLX cells as an “off the shelf” post radiation treatment, which could potentially be used in the future for treating ARS patients.


Dendreon ends manufacturing contract with GSK for Provenge:  DNDN said it terminated a deal with GlaxoSmithKline to mass-produce the former’s prostate cancer drug Provenge because of “unforeseen delays and implementation difficulties in achieving [its] commercial purpose.” Dendreon said it might continue to pay GSK $2M a month for September and October.